Thursday 23rd September 2010 |
Text too small? |
Tourism Holdings agreed to sell its transport and tourism businesses in Fiji to local interests and will use the funds to repay debt.
The company’s Tourist Transport (Fiji) and Feejee Experience units are to be merged with a local company called Coral Sun (Fiji), creating the island nation’s largest tourist transportation operator, it said in a statement.
The price will be based on the value of net assets, at about $1.8 million, chief executive Grant Webster told BusinessDesk. Tourism Holdings was approached by Coral, its major competitor in Fiji.
The assets are not strategic for the company, he said.Tourism Holdings’ 2009 annual report said the Fiji businesses were operating in a “difficult” environment though it was “operating effectively after the recent political issues and the January 2009 flood recovery”.
Still, Webster said Fiji has enjoyed “a bit of a resurgence of late” and Tourism Holdings had a good 2009-2010 year in local currency terms, with the current year “on track for further gains”.
Fiji’s military regime has cracked down on foreign ownership of some businesses, forcing Rupert Murdoch’s News to sell the Fiji Times to local interests. But Webster said the political environment didn’t have a bearing on his decision to sell.
“We’ve owned TTF through floods, through a number of coups – the political environment had nothing to do with it,” he said.
The sale is expected to settle at the end of the month.
Shares of Tourism Holdings were unchanged at 80 cents.
Businesswire.co.nz
No comments yet
Tainui appoints ex-Heartland exec Craig Stephen to drive new investment strategy
Utilico sells Tourism Holdings stake for $5.7 mln
Tourism Holdings says annual earnings fell 11 percent to $14.6 million on weak demand in Australia
Tourism Holdings looks to snaffle failed Pacific Horizon's customers, won’t buy assets
GPG's Campbell joins Tourism Holdings board
Tourism Holdings shares fall on earnings guidance cut, weak Australian market
Tourism Holdings forecasts first-half loss on merger costs
Tourism Holdings shareholders give $69.5M merger the nod
Tourism Holdings $69.5M merger offers 'compelling' opportunities
Tourism Holdings shares surge